We all now that Bitcoin Futures contract adoption by one of the leading exchanges like CME and CBOE had helped in Bitcoin to rope some legitimacy to its trading process. Now two technology orientation companies have collaborated to ascertain a benchmark price for the second most significant cryptocurrency in terms of its market capitalization, Ethereum.

So the New York-based Blockchain startup ConsenSys has teamed up with TrueDigital, which is subsidiary of the international electronic exchange for interest rate swaps trueEX, published plans to develop a target reference index for ethereum prices. The move is an introductory part of an extensive project to make further crypto-trading products ready for institutional investors, such as banks, investment funds, brokerage firms or insurance companies.

Not only this, the trueEX exchange said it was preparing to begin a derivatives marketplace for trading cryptocurrency assets. The primary product is supposed to be a bitcoin contract, which will be patronizing on the firm's swap platform. The agreement, which will be advertised under the TrueDigital brand, as per the media reports is waiting for permission from the US Commodity Futures Trading Commission (CFTC).

If approved, the project may expedite the development of exchange products for ethereum with an accurate price index reference. The Last year's experimentation by the US regulator authorized trading of bitcoin futures proposed by CME Group and the Chicago Board Options Exchange (CBOE).

“Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities,” said the founder of TrueDigital, Sunil Hirani, as quoted by Coindesk.

“But the marketplace is sorely lacking the necessary foundation, infrastructure, and platforms that institutional investors have come to expect in other important markets,” Hirani added.

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